“The prospect of a stalemate is a possibility,”
Warrnambool Chief Executive Officer David Lord said today in a
phone interview. “If in the future we ended up with a share
register, which was altered in a major way and we had a number
of major, large shareholders, then we would continue to manage
the business in the interests of all the shareholders.”

Warrnambool shares are trading below bids by Saputo Inc.,
Canada’s biggest milk processor, and Victoria state-based Murray
Goulburn Cooperative Co. The fate of the bids may rest with Bega
Cheese Ltd., Murray Goulburn and Kirin Holdings Co., which hold
a combined total of about 46 percent of Warrnambool, according
to data compiled by Bloomberg.

Saputo, which holds 18 percent, is unlikely to gain control
of the producer without capturing at least one of the other
major stakes, according to Mark Topy, a Melbourne-based analyst
at Canaccord Genuity Corp. “The Bega holding is now pivotal,
whoever can get that Bega holding, if they do sell, will be
across the line,” Topy said by phone. Bega holds 18.8 percent
of the dairy producer, Warrnambool said Jan. 7.

Warrnambool declined 0.7 percent to A$9.14 at the close in
Sydney. Saputo will pay a maximum A$9.60 cash a share on the
condition it gains more than 90 percent of Warrnambool, the
Montreal-based company said Dec. 17 in a statement. The offer
trumps a A$9.50 bid from Murray Goulburn, which requires
approval from the Australian Competition Tribunal to complete
any deal.

Saputo’s offer is scheduled to close on Jan. 10, the
Canadian producer said in its statement.